Big move: India launches Rs 12,980 Cr ‘Bharat Maritime Insurance Pool’ amid West Asia conflict - Here's why
&imwidth=600&imheight=450&format=webp&quality=medium "Big move: India launches Rs 12,980 Cr ‘Bharat Maritime Insurance Pool’ amid West Asia conflict - Here's why")
Representative image. Photograph: (AFP)
The BMI pool will provide coverage across a wide range of maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War-related risks. It will apply to Indian-flagged vessels as well as ships transporting goods to and from Indian ports.
The Central has announced the creation of the ‘Bharat Maritime Insurance Pool’ (BMI pool) on Saturday (April 18, 2026), with a sovereign guarantee of Rs 12,980 crore to ensure uninterrupted maritime insurance coverage for Indian trade. The coverage includes hull, machinery, cargo, protection and indemnity (P&I) and war.
The decision was taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi. Following the move, Union Information and Broadcasting Minister Ashwini Vaishnaw briefed reporters after the Cabinet meeting, saying, “A big factor of insurance, which the world understood during the West Asia conflict, is that insurers and reinsurers were not ready to insure the ships going to West Asia… In view of this, a decision has been taken to create a sovereign guarantee fund of Rs 12,980 crore to facilitate maritime insurance. It will cover all maritime risks including hull, machinery, cargo, P&I and war. Vessels with the India flag will be covered under this.”
BMI pool
The initiative comes amid growing global volatility and geopolitical tensions that have increased risks for ships and cargo, driving up insurance premiums and creating uncertainty around coverage. The domestic pool aims to reduce India’s reliance on foreign insurers and ensure smoother trade flows even through volatile maritime corridors.
The BMI pool will provide coverage across a wide range of maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War-related risks. It will apply to Indian-flagged vessels as well as ships transporting goods to and from Indian ports, regardless of their origin.
At present, Indian vessels largely depend on global insurers, such as the International Group of Protection and Indemnity (IGP&I) Clubs, for third-party liability coverage, including risks such as oil spills, wreck removal, cargo damage, crew injuries, and collisions. The government has highlighted that such dependence can be risky, especially during sanctions or geopolitical conflicts that may disrupt access to coverage.
Trending Stories
&im=FitAndFill=(700,400))
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
)
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
